Friday, 10 July 2015

The Budget

By the time you read this article, George Osborne will have presented his first budget of this new Parliament.  Good progress has been made in the last five years reducing the deficit, but there is more work to do.  

In Britain we have earned credibility, which means we have incredibly low interest rates at the moment which is a respite for those paying mortgages and a stable economy increases confidence in business which has contributed to a sharp fall in unemployment here in Camborne, Redruth and Hayle.

As I write this article, there is a lot of speculation about what the Budget will hold. We are likely to see a further clampdown on wealthy individuals claiming non-dom status in this country as part of a wider £5 billion crackdown on tax avoidance while the personal allowance threshold is also likely to move closer to £12,500. This will be especially important here in Cornwall where we have a higher number of people on lower incomes.  

To help balance the books, George Osborne has been clear that we will need to look again at the amount of benefits some households receive.  He has already said we will continue to protect the most vulnerable in society such as the disabled. However, where people can work, they should work and it is simply wrong that some families not working are better off financially than those who do work and pay their way. 

In addition, there could be good news for Cornwall with speculation that a new growth deal could be on the way that would give Cornwall some additional investment in infrastructure, the ability to manage more of its own services and with funding for the NHS and social care being more joined up to make sure that the money we have is used effectively.

The economic situation today is very different from the one inherited in 2010. Britain has the fastest growing economy in Europe, the deficit has been halved and we have record numbers of people in work.  I hope this Budget will help sustain that momentum.